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The KPMG layoffs 2026 have brought awareness to the world of consultancy. In late April 2026, the Big Four firm announced it would be laying off about 4% of its U.S. advisory workforce – or around 400 people – due to reduced demand for some services and lower than anticipated voluntary attrition in the wake of pandemic hiring binges. The reality for consulting and financial service professionals is that it’s not a matter of “if” – it’s “when” – they will be affected by restructuring.
Why KPMG is Restructuring 2026
The Wall Street Journal reported KPMG’s advisory practice – which has more than 10,000 employees in the U.S. – is being restructured by two factors: the Trump administration’s regulatory rollback, which has meant less demand from the bank and financial services sector for consulting services that focus on compliance, and an oversupply of workers that resulted from the post-pandemic hiring boom.
KPMG has also announced separate job cuts in its audit business in the U.S., with around 100 partners leaving the firm, or 10% of audit partners, some in voluntary early retirement.
KPMG said the changes are “a strategic realignment to make sure our people’s skills and capabilities are aligned with future demand” – a sign that this is less a reactive response to a crisis than an active adjustment to changing market needs.
Which Jobs are at Risk in the KPMG Advisory Job Cuts
The KPMG layoffs 2026 had a particular focus on three advisory areas:
1. Regulatory Risk Advisory – the biggest victim. With the US federal government easing regulatory scrutiny on banks and financial institutions, clients have curtailed their spending on regulatory advice.
2. Consumer Operations – Consumer and financial process and operational consultants are feeling the pinch of decreased demand from clients as their discretionary budgets are cut.
3. Financial Services Advisory – In general, areas related to compliance systems, risk management and financial regulatory reporting are witnessing a decline in demand – a Big 4 layoffs theme that seems to be going strong across the board (at least as far as KPMG is concerned).
Significantly, the Wall Street Journal reported that about half of the layoffs were of under-performing consultants and no partners in the advisory business were laid off.
What’s Growing — and Where the Opportunity Is
The KPMG layoffs don’t mean all of the firm’s advisory practice is shrinking. The firm specifically cited growth in its transactions, strategy and artificial intelligence (AI) services. This is in line with trends in consulting layoffs 2026, where businesses are proactively reallocating resources to technology-based and artificial intelligence (AI) enabled consulting services.
This is a critical indication for anyone looking at how to avoid layoffs that consulting firms are engaged in.
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Career Survival Tips for the Consulting Industry
The KPMG layoffs affect more than just those who are let go; others must take on more work, teams are reconfigured, and expectations are changed. Here’s how to stay ahead:
Become conversant in AI-related jobs. Consulting skills 2026 are emerging around AI adoption, data and technology transformation. AI tools, automation or prompt engineering skills can set you apart.
Move from compliance to strategy. Compliance and regulatory jobs are most vulnerable among those consulting firms that are downsizing. Lateral moves to strategy, M&A or digital strategy will be more sustainable.
Document your value to clients. If half of the layoffs are based on performance reviews – as was the case in the KPMG layoffs 2026 – you need to show the business value you bring.
Build internal relationships. Expanding KPMG and other firms are recruiting from within. Networking with people in growing areas can lead to pre-announced positions.
Upskill proactively. For one thing, KPMG vowed to “continue to support our people in upskilling for the future”. Take advantage of whatever L&D services your company may provide – especially technology and data-related.
The Big Picture: Big 4 Layoffs Trends to Watch
KPMG is not alone. In recent years, layoffs at big accounting and consulting firms have focused on the advisory arm, where growth in some areas has slowed. Given the advances of AI in providing services and the drop in compliance work due to regulatory changes, Big 4 companies will have to adjust their talent pool. The KPMG layoffs 2026 are only a consequence of this change.
The lesson learned from all this is that consultants must focus even more on their skills regarding technology and specialization within their practice areas.
